News summary
The 500,000-ton/year MEG plant in South China was restarted, and the 300,000-ton/year ethylene glycol plant in Anhui was reduced. Ethylene glycol prices fluctuated downward, and market buying sentiment was sluggish. The EG2409 contract closed down as polyester demand was weak. The cost of making ethylene glycol from coal has increased, while the cost of making oil has been relatively stable. Short-term ethylene glycol prices may remain volatile.
Newsletter text
South China's MEG plant is restarted, and the ethylene glycol market may usher in changes. South China's set of 500,000 tons/yearcryptoplaytoearngameslistThe ethylene glycol (MEG) device of the company warmed up and restarted today. The device has been stopped for maintenance since mid-to-late March and has now been restored as planned. At the same time, a 300,000-ton/year syngas to ethylene glycol plant in Anhui has recently reduced its load to 40%-50% and is expected to last for a long time.
Ethylene glycol prices fluctuated and weakened, and market buying sentiment was weak. On May 21, the center of gravity of ethylene glycol prices fluctuated and weakened, and on-site buying sentiment was weak. Ethylene glycol prices were weak during night trading, and the basis operation was relatively stable. This week's spot transaction is around 35 yuan/ton for the 09 contract. During the day, the ethylene glycol market continued to be weak, and the basis weakened simultaneously in the afternoon. By the end of the day, spot transactions reached a discount of around 40 yuan/ton for the 09 contract.
The performance of the US dollar market was sluggish. In terms of traders participating in the limited US dollar market, the external center of gravity of ethylene glycol fluctuated and weakened. The recent transaction price of cargo in the morning was about US$526/ton, and the focus of discussions in the afternoon dropped back to US$522 -523/ton. At present, individual traders are participating in buying, but the overall market performance is relatively sluggish.
Rumors of polyester production reduction have affected the market, and the production and sales situation is not optimistic. On May 21, the production and sales rates of polyester filament, polyester staple fiber and polyester chips products in the polyester industry chain were 45cryptoplaytoearngameslist.48%、29.74%、53.36%。Market rumors are that the polyester industry may further reduce production, and the production and sales situation is not optimistic. Affected by this, ethylene glycol futures prices continued to fall before the close.
The upward momentum of ethylene glycol prices is limited. Fundamentally driven, generally after the current ethylene glycol price rises to 4500 yuan/ton, there is little upward momentum. On the one hand, affected by weak demand, on the other hand, a potential rebound in supply is also limiting prices. The cost of coal production increases with the rise in coal prices, while the pressure on oil production is less due to the cheap price of ethylene. Fundamentally driven, the arrival of Zhangjiagang will be relatively concentrated from late this year, and inventory will become a key factor affecting prices.